The Research On The Inner Governance Mechanism Of Non-profit Organization

With the Market Economy developing and political system reform deepening, the "Third Sector" in China has developed very fast and it has played a dispensable role in extensive lives of society, such as politics, economy and culture. However, non-profit organization failure is expressing itself in all kinds of forms. Therefore, how to govern the failure and raise the degree of public credibility is a problem that non-profit organizations are anxious to solve.However, the academic circle has still not laid enough stress on the problem of non-profit organization governance .Up till now, there is no unanimous concept about non-profit organization governance in theoretic circle.This thesis combines the characters of nonprofit organizations with some useful experience which has been extracted from corporate governance. This article lays great stress on the inn governance mechanism after summarizing non-profit organization governance and its inner governance. Due to the Principal-Agent Relationship, the effective mechanisms which corporate governance has provided to solve the problem of corporate governance also apply to non-profit organizations. This article tries to make some theoretical analysis on inner incentive mechanism, inner supervising mechanism and inner decisive mechanism separately. It analyzes the present condition of inner governance mechanism of non-profit organizations in China by making use of the theory. At the same time, this article puts forward some suggestions from these three aspects ;It is the first time that the author introduces the word "moral hazard" to non-profit organizations and represents that the inner supervising mechanism of non-profit organizations is a unity of moral autonomy and systematized autonomy; proposes that non-profit organizations must make people the first and make credibility the first, work out some ethical and moral principles and build credit culture of China gradually; puts forward that the inner decision of non-profit organizations is hierarchical decision and that non-profit organizations should build the principle that board of directors make important decisions and they should ensure that board of directors is in a central status of decision .At the same time ,it should empower the chief executive officer enough decisive rights to decide everyday affairs.In a word, non-profit organizations in China are anxious to construct ascientific and reasonable inner governance mechanism in order to overcome failure of non-profit organization governance and relieve the credit crisis of non-profit organizations.